Morningstar questions Perennial in review
Perennial Investment Partnershas been given a poor rating by research houseMorningstardue mainly to the fund manager’s continued “sub-par returns” over the medium to long term.
Morningstar’s Australian equities sector strength rating of Perennial gave the fund manager a score of only two out of a possible five.
In the review, Perennial’s investment team and performance were both labelled ‘weak’, with all other categories, including investment process, portfolio construction and risk management, being termed only ‘average.’
Morningstar says Perennial Growth’s growth bias has been a liability in a value-driven market, and the fund manager’s poor stock selection and lack of exposure to the listed property trust sector had hurt its performance.
The research house says that Perennial’s investment team is suffering from stretched resources and staff turnover issues, while the investment process has not delivered a consistent and correct signal.
However, the research house says Perennial manages a relatively small amount of money with its growth strategy, which means there are no capacity issues.
Morningstar says that it remains to be seen if the Perennial Growth investment team’s plan to bolster resources will translate into an improvement in competitive performance.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
